Key points
  • The RBA chose to keep the cash rate at 4.35% on Tuesday
  • Banking giant Macquarie lifted fixed interest rates in the wake of the decision
  • Bank Australia and Teachers Mutual Bank also shook up their home loan rates 
  • Meanwhile, Great Southern Bank edited its variable rate lineup this week

The central bank board's May meeting was closely watched by mum-and-pop borrowers and economic enthusiasts alike amid speculation the cash rate could be hiked.

Such speculation came to the forefront on the back of the March quarter's inflation upside.

However, to the shock of many commentators, the RBA board didn't even return to its hawkish bias following the meeting, saying inflationary wobbles are to be expected going forward.

Those looking for a new home loan or considering refinancing didn't have much to celebrate, though.

Despite a cash rate hike being wiped from the table for now, many banks and lenders upped their own advertised rates this week.

That might suggest that product teams are expecting rates to be on hold for longer than they may have previously, leaving them to reprice their fixed offerings.

Macquarie was among those increasing home loan interest rates, as were some notable customer-owned bank brands.

So, what's new in the home loan market? Let's take a look.

Macquarie Bank hikes fixed mortgage rates

Not-quite-big-four-bank Macquarie increased the rates offered to borrowers looking to fix this week, lifting them by as much as 26 basis points.

Changes were made to the lineup for those paying principal and interest (P&I), interest only (IO), investing in property, or living in their abode.

The move comes just two weeks after the investment banking giant dropped variable rates for its retail consumers.

For owner-occupiers with a loan-to-value ratio (LVR) of between 70% and 80%, these changes might be worth considering:

Product Change New rate (% p.a.) Comparison rate* (% p.a.)
One year fixed +26bp 6.75% 6.27%
Two years fixed +24bp 6.39% 6.25%
Three years fixed +26bp 6.35% 6.26%
Four years fixed +24bp 6.49% 6.32%
Five years fixed +24bp 6.49% 6.35%

Mutual banks hike fixed home loan rates

It wasn't just publicly owned banking giants hiking fixed home loan rates either.

Bank Australia increased many of its rates for owner-occupiers paying P&I by 15 basis points, with changes to its basic products including:

Product Change New rate (% p.a.) Comparison rate* (% p.a.)
One year fixed ≤80% LVR +15bp 6.24% 6.20%
Two years fixed ≤80% LVR +15bp 6.14% 6.50%
One year fixed ≤90% LVR +15bp 6.44% 6.72%
Two years fixed ≤90% LVR +15bp 6.34% 6.70%

Meanwhile, Mutual bank headliner Teachers Mutual Bank and subsidiaries Firefighters Mutual Bank, Health Professionals Bank, and UniBank joined the action.

The group increased the offered rates on many of its Your Way Plus home loan products by as much as 80 basis points.

The Your Way Plus product offers an offset account not provided with the bank's simpler Your Way product.

Speaking of, the fixed rates offered on the You Way product were actually dropped this week.

Owner-occupiers paying P&I repayments might consider these newly reduced rates:

Product Change New rate (% p.a.) Comparison rate* (% p.a.)
Your Way, two years fixed -20bp 6.29% 6.31%
Your Way, three years fixed -15bp 6.24% 6.30%
Your Way, four years fixed -25bp 6.34% 6.34%
Your Way, five years fixed -30bp 6.39% 6.37%

Great Southern Bank hikes variable home loan rates too

Finally, for borrowers considering a new mortgage product, customer-owned Great Southern Bank brought apparent bad news this week.

It upped certain fixed and variable rates offered to new borrowers by as much as 25 basis points.

The bank's Basic Variable rate, for those making P&I repayments with an LVR of 70%-80%, was increased by 5 basis points to 6.24% p.a. (6.30% p.a. comparison rate*).

Other movers

  • MyState Bank lifted fixed interest rates by up to 30 basis points
  • Sovereign NZ dropped fixed mortgage rates by as much as 10 basis points


Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUP TO $4K CASHBACK
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

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